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Accounting

What accounting requirements are there in Uganda?

In Uganda, the Institute of Certified Public Accountants (ICPAU) is the standard-setting body for accountancy. The ICPAU is mandated by the Accountants Act (Chap. 266) to:

  • Regulate and maintain the standards of accountancy in Uganda
  • Prescribe or regulate the conduct of accountants in Uganda

The financial reporting standards required to use in Uganda are the International Financial Reporting Standards (IFRSs). This means that all domestic companies whose securities trade in a public market are required to use the IFRSs for their financial statements. All foreign companies whose securities trade in a public market are also required to use IFRSs.

Concerning the IFRSs for SMEs, Uganda has adopted them without any modification. Some companies whose securities are not publicly traded are required to use full IFRSs. All others are required to use either the full IFRSs or the IFRS for SMEs.

The ICPAU has designated certain entities as being publicly accountable. These entities cannot use the IFRS for SMEs. They must use full IFRSs. Publicly accountable entities include, but are not limited to:

  1. Entities whose debt or equity instruments are traded in a public market (a domestic or foreign stock exchange or an over-the-counter market, including local and regional markets), or are in the process of issuing such instruments for trading in a public market.
  2. Entities that hold assets in a fiduciary capacity for a broad group of outsiders as one of its primary businesses.
  3. Public organizations that are owned in whole or in part by the State or that are otherwise controlled directly or indirectly by the State.
  4. Private organizations in which the State has a non-controlling equity interest.

All entities that are not publicly accountable and prepare general purpose financial statements are permitted to apply the IFRS for SMEs. Finally, all the SMEs that do not use the IFRSs for SMEs use the full IFRSs. More detailed information can be found when clicking here.

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